Brent (a 4-hour chart)
Oil prices stuck around three weeks highs being unable to extend their gains amid growing concerns that OPEC members will not agree to cut oil production.
Oil prices remained in an ascending channel, trading near its lower boundary. After refreshing weekly highs Brent futures retreated as buyers took a breath before going higher. The benchmark extended its recovery climbing upwards with a timid pace. The price approached 49.50 ahead of the NY session. The price stayed around the 200-EMA during the day. The 200-EMA moved downwards, the 50-EMA crossed the 100-EMA upwards. The resistance lies at 49.50, the support comes in at 48.50 dollars per barrel.
MACD decreased which indicates the buyers’ positions weakening. The RSI indicator remains within overbought readings.
The longer term outlook will be bullish as long as the price holds above 48.50. A move below the level would indicate that immediate upward pressure eased. Sellers will drag prices towards 47.50. Meanwhile, a move higher may extend current gains towards 50.00.